Franchising Code Overhaul
Small Business Minister, Gary Gray, yesterday announced that the Government will be implementing most of the recommendations contained in Mr Alan Wein’s Review of the Franchising Code of Conduct. The changes are reported to deliver better outcomes for franchisors and franchisees.
The key changes include:
• building on an effective disclosure regime by ensuring that disclosure remains relevant, timely, effect and reflects modern changes in our economy such as the growth of online shopping;
• Clarification that the Government expects franchisors and franchisees to act in good faith toward one another by making it a requirement under the Code;
• Enhancing compliance and enforcement of the Code by providing additional tools to the Commonwealth regular, the Australian Competition and Consumer Commission;
• and clarifying the policy intent of provisions of the Code which have caused unintentional confusion or an administrative burden without any corresponding benefit.
For a full copy of the report, click here